Owning a home is a privilege, not an entitlement

Recently I have heard a number of stories from other agents about individuals who could not qualify for loans under the new tightened standards. In almost all of these cases the buyers were putting only a few percent down on the house and had poor credit scores. Several of these buyers were furious that they could not obtain funding and in one case the buyer called a representative at the bank and chewed him out - saying the current mortgage crisis is due to people like him.

Let me say this bluntly.

Owning a home is a privilege, not an entitlement.

The reason we are in this mess right now is because too many people believed that owning a home was their given right. It is not a right. It is something that requires hard work and dedication. Saving at least ten percent for a home certainly is not easy, but it is possible if you manage your finances and work hard.

I am glad that banks are tougher in their lending right now, because not everyone deserves to own a home. If someone cannot manage their finances now, how will they manage them with the added burden of home ownership? If someone saves for years and cannot gather at least ten percent of the price of the home, how can they be expected to make the payments on the property - along with the repairs and higher utility costs associated with home ownership?

I can tell you first hand what will happen to these people. They will be unable to make their payments and the bank will be stuck with the home once again. Therefore, I certainly cannot blame the banks for being picky.

I have stated on numerous times that I am strongly in favor of home ownership. It leads to a dramatic improvement in self esteem and quality of life, but it is not guaranteed to everyone. Home ownership is a privilege for those who are capable of managing their finances and saving towards a goal. The economy has already corrected itself once because too many people learned this the hard way. Let's not make it self correct again.